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Perkins, Rosalyn
Castaño, Mary Caroline
Montemayor, Condrad
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[Journal:] Journal of Economic Structures [ISSN:] 2193-2409 [Volume:] 7 [Year:] 2018 [Issue:] 10 [Pages:] 1-18
Generally, trade policies exclude provision for predictability and accountability as transparency measures and facilitates trade consensus that enhance market access, reduce trading costs, and promote cooperation. In analyzing the trajectories on transparency, free trade agreement (FTA), and trade growth, many scholars investigate international trade norms on how countries play a proactive role to increase competition and improve transparency but limited in scope on the inter-linkages between these three variables that contribute to trade and economic growth. This paper intends to address this missing link by examining the causal relationships between the two transparency measures, FTA, and trade growth from a sample of 15 countries in the Asia-Pacific region using panel regression analysis. Results show a significant impact in trade growth affected by a percent changed in predictability and FTA measures. While increase in trade disputes, i.e., less accountability transparency measure tends to decrease trade growth. By determining the effects of transparency practices and FTAs in the international trade arena, the study concludes that these trade policy tools are important parameters to boost trade growth.
Trade growth
Trade policy
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